AWR Achieves Record Bookings and Revenue for Fiscal Year 2003; EDA Company Records Sixth Consecutive Year of Record-Breaking Growth.

Business Editors/High-Tech Writers

EL SEGUNDO, Calif.--(BUSINESS WIRE)--April 14, 2003

Applied Wave Research, Inc. (AWR(TM)), a leading provider of high-frequency, electronic design automation (EDA) tools, today announced record sales and revenue with the closure of fiscal year 2003, ending March 31. Key achievements included: major product releases and shipments; strategic new customer accounts, including sales to several top semiconductor companies; availability of new semiconductor foundry libraries; addition of key EDA partners; and continued expansion of AWR's research and development, sales, and support network.

Dramatic Bookings and Revenue Growth

Despite a tough economic climate, AWR achieved the company's sixth year of double-digit growth in bookings, which resulted in an over 50% compounded annual growth rate (CAGR) in revenue over the last four years. March 2003, and the fiscal quarter ending March 31, were also the company's record month and record quarter in both bookings and revenue. Record revenues were led by strong sales of AWR's flagship Microwave Office(TM) product, and outstanding growth in sales of Visual System Simulator(TM) (VSS) design software.

"Fiscal year 2003 was the most successful in AWR's history," said James Spoto, president and CEO of AWR. "Our continued growth indicates that customers are willing to invest in upgrading their design technology to prepare for the economic recovery. We have closed several large sales to existing customers, as well as new customers worldwide. Our backlog has also continued to grow, as we transition from mostly perpetual licensing to a balance between term-based and perpetual licenses. We are very pleased with the results and look forward to another successful year."

Strengthened Product Line with New Foundry Libraries

AWR shipped two major product releases, VSS 2002 and TestWave(TM) software. VSS 2002 communications system design suite provides comprehensive system as well as circuit design capabilities with integral radio frequency (RF) and digital signal processing (DSP) analysis, enabling system engineers to perform top-down analysis of analog and digital communications systems. The TestWave solution integrates test and measurement instruments into the AWR design environment, working seamlessly with VSS and Microwave Office simulation solutions. TestWave software provides wireless system and RF/microwave circuit designers a complete integration of the design process, combining schematic simulation, test signal generation, and test and measurement verification.

The company also announced library support for key gallium arsenide (GaAs) processes from major foundries, including: TriQuint, OMMIC, Global Communication Semiconductor, and WIN Semiconductors.

Expanded Customer Base, New Partnerships, and

Expanded Sales Presence

AWR added over a dozen new customers to its rapidly expanding worldwide customer base, including: Alcatel, Intel Corporation, Triquint Semiconductor, Qualcomm, CSRIO (Australia's Commonwealth Scientific and Industrial Research Organization), among others. AWR further strengthened the company's alliance with Synopsys (Nasdaq:SNPS) via a technology licensing agreement that enables AWR to integrate Synopsys' HSPICE(R) analog and mixed-signal circuit simulation solution into AWR's high-frequency design environment. The company also announced membership in the Cadence Design Systems' Connections Program (NYSE:CDN), through which AWR will provide a comprehensive solution integrating microwave and RF integrated circuits with Cadence's Analog Design Environment. The company increased its global presence by opening a direct sales office in the United Kingdom, and adding new value added resellers in China, Germany, Singapore, Thailand, and Russia.

About Applied Wave Research, Inc.

Applied Wave Research was founded in 1994 and is a leading supplier of high-frequency electronic design automation (EDA) products for the design of wireless telecommunications equipment, semiconductors, high-speed computers, networking systems, and a variety of other electronics-based products. AWR is a privately held company and has development offices, sales offices, training centers, and distributors worldwide. AWR has over 400 customer companies, including virtually every major high-frequency electronic component and system supplier. The company is located at 1960 East Grand Avenue, Suite 430, El Segundo, California 90245. For more information about AWR and its products, please visit www.mwoffice.com or call 310/726-3000.

AWR, the AWR logo, Microwave Office, Visual System Simulator, and TestWave are trademarks of Applied Wave Research, Inc. All other marks are the property of their respective holders.